We Think Shareholders Are Less Likely To Approve A Pay Rise For Savor Limited's (NZSE:SVR) CEO For Now

Key Insights

• Savor's Annual General Meeting to take place on 30th of September
• Total pay for CEO Lucien Law includes NZ$550.0k salary
• Total compensation is similar to the industry average
• Over the past three years, Savor's EPS grew by 99% and over the past three years, the total loss to shareholders 53%

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Shareholders of Savor Limited (NZSE:SVR) will have been dismayed by the negative share price return over the last three years. Despite positive EPS growth in the past few years, the share price hasn't tracked the fundamental performance of the company. These are some of the concerns that shareholders may want to bring up at the next AGM held on 30th of September. Voting on resolutions such as executive remuneration and other matters could also be a way to influence management. Here's our take on why we think shareholders may want to be cautious of approving a raise for the CEO at the moment.

Check out our latest analysis for Savor

Comparing Savor Limited's CEO Compensation With The Industry

At the time of writing, our data shows that Savor Limited has a market capitalization of NZ$14m, and reported total annual CEO compensation of NZ$610k for the year to March 2025. That's a notable increase of 8.9% on last year. In particular, the salary of NZ$550.0k, makes up a huge portion of the total compensation being paid to the CEO.

In comparison with other companies in the New Zealand Hospitality industry with market capitalizations under NZ$341m, the reported median total CEO compensation was NZ$770k. This suggests that Savor remunerates its CEO largely in line with the industry average. What's more, Lucien Law holds NZ$916k worth of shares in the company in their own name.

Speaking on an industry level, nearly 62% of total compensation represents salary, while the remainder of 38% is other remuneration. Savor is paying a higher share of its remuneration through a salary in comparison to the overall industry. If total compensation veers towards salary, it suggests that the variable portion - which is generally tied to performance, is lower.

Savor Limited's Growth

Over the past three years, Savor Limited has seen its earnings per share (EPS) grow by 99% per year. In the last year, its revenue is down 8.4%.

This demonstrates that the company has been improving recently and is good news for the shareholders. It's always a tough situation when revenues are not growing, but ultimately profits are more important. Although we don't have analyst forecasts, you might want to assess this data-rich visualization of earnings, revenue and cash flow.

Has Savor Limited Been A Good Investment?

Few Savor Limited shareholders would feel satisfied with the return of -53% over three years. So shareholders would probably want the company to be less generous with CEO compensation.

To Conclude...

Shareholders have not seen their shares grow in value, rather they have seen their shares decline. The stock's movement is disjointed with the company's earnings growth, which ideally should move in the same direction. Shareholders would be keen to know what's holding the stock back when earnings have grown. The upcoming AGM will be a chance for shareholders to question the board on key matters, such as CEO remuneration or any other issues they might have and revisit their investment thesis with regards to the company.

While CEO pay is an important factor to be aware of, there are other areas that investors should be mindful of as well. That's why we did some digging and identified 1 warning sign for Savor that investors should think about before committing capital to this stock.

Important note: Savor is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.